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FBN’s Peter Barnes on Fannie Mae and Freddie Mae’s plans to start a joint company to securitize home loans.
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Breaking news right now Fannie Mae and Freddie Mac coming together announcing today a new joint company in an effort to wean itself off government support.
Fox business's Peter Barnes joins us now with the very latest that sounds very ambitious is it true.
It is ambitious Jerry and it's gonna take awhile to pull something -- like this off but the administrator.
The the regulator of Fannie and Freddie -- trying to.
Might get something going move the ball down the field here.
As congress tries to figure out how to.
Wind down and close Fannie and Freddie which as you as you know I've got about -- 190 billion dollar bailout for the taxpayers slowly plant paying it back.
But everyone it down eventually wants to close them and get the private markets back into the mortgage game.
Before the crisis.
Wall Street underwrote.
And securitized a lot of these mortgage loans not not now that's all dried up and it's basically Fannie Freddie and the FHA so now Edward DeMarco.
Who is the regulator of Fannie and Freddie -- trying to get some traction on on getting getting rid of Fannie and Freddie -- Well as I understand it from the story.
They're bringing the coming together ever securitization and they're gonna create write a company in the middle.
The does all the securitization ultimately that might be privatized.
That sounds like.
A tricky thing to -- to -- to say the least.
Yeah well it it it right now what would be a government.
Owned entity of which -- Take the place of the private sector of the private market Wall Street firms -- to do all of this of course there were lots of cases and lots of stories.
About how -- a packaged up a lot of sub prime mortgages and rotten loans and that helped the tank they.
Take the economy and and and the F financial markets.
But the fact is is that despite repeated proposals from the administration.
And congress to try to.
Get moving.
On fixing this and getting the private markets back into.
Underwriting mortgages and letting the markets sent mortgage rates rather than some kind of government subsidy here.
Government underwriter.
It has been very slow going it's been very hard to do a lot of people in the real estate business have been lobbying to keep -- says they are because they've been working just been pretty good as her.
From the stand quite a real there's an -- So it says it's an effort -- another effort to try and get the -- Granted grounds that it's coming from -- -- because.
He's the one who turned down the president's last plan to allow everybody to refi so -- coming into the marketplace with a different solution.
The B and decency -- get on board Peter Barnes thanks for joining us tonight it's always so good to see you thanks so much larger thank you.
